LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
'Reciprocal licensing' between provinces means:
- AOnly federal licences exist, so an agent licensed anywhere in Canada may sell in every province
- BOne provincial licence covers all of Canada once the agent has held it for a stated number of years
- A home-province agent can obtain another province's licence more easily but still needs one in each province
- DNo licence is needed to sell across provincial borders, provided the client initiated the contact and the insurer is licensed there
Correct answer: C) A home-province agent can obtain another province's licence more easily but still needs one in each province
Mobility is facilitated, but each province's licence is required.
Why the other options are wrong
- AThere is no federal agent licence.
- BSeparate licences are required per province.
- DA licence is required in every province where business is done.
Exam tip
Reciprocity eases, but does not remove, per-province licensing.
Common mistake
Assuming a home-province licence permits sales in a neighbouring province.
What this tests
CISRO competency component 2.1 — Integrate into practice the rules governing the activities of life insurance agents — which is weighted at 40% of the Ethics & Professional Practice module. Written against the published curriculum.
More from component 2
- A prospective client wants to confirm that an agent is properly licensed before meeting him. She should:
- A dual-licensed agent's mutual fund business is reviewed following a client complaint. The review will be conducted by:
- Assuris coverage applies to:
- OLHI's services are available to:
- Complaints about an agent's conduct (as opposed to an insurer's claim decision) should be directed to:
- The best summary of an agent's ethical obligations is to:
Practice the whole Ethics & Professional Practice module
Timed sets weighted like the exam, and review of every question you miss. Free to start.